"If you can get your hands on a directory of doctors, you'll be made." Believe it or not, this was part of my training as a rookie financial adviser over 20 years ago when cold-calling, door-knocking and investment seminars were the primary methods of finding new clients. The pressure to bring in new assets was intense, so focusing prospecting efforts on the perceived wealthy was an obvious route.

If you are a high income earning doctor, lawyer, C-suite executive or successful business owner, you probably know that you are a target, not just of the financial services industry, but of others as well.

The method of getting your attention and creating doubt about your current service providers may have changed over the years, but you are still more heavily prospected than almost any other demographic.

A quick Internet search on prospecting doctors generated the following gems:

"Power Prospecting - Get in front of Physician Prospects in 28 days!"

From a Canadian industry magazine, on why one adviser prospects younger doctors: "It's better to catch them before they have their own lawyers and accountants. A physician in her 50s, for instance, probably has a solid relationship with an adivser, and she'll only move if something market- or service-related breaks that relationship.":

"7 Ways to Prospect Doctors"

In a list of the top six niches financial advisors should target, "occupations" is number two, and the author specifically recommends doctors and lawyers.

Extra Vigilance

OK, so I've hopefully made the case that you are a hot commodity, So why does it matter?

I think it means that you need to be extra vigilant when being approached by someone from the financial industry (even if that person was me!). Anectdotally, highly taxed professionals are generalized as being particularly vulnerable to pitches of "creative" tax reduction schemes and products exclusive to the "high net worth" individual. Appeal to their ego, I've been told many times. Show them something not widely available to get their attention.

Sigh. I'm sorry to tell you that extra vigilance takes energy. But it takes a lot more energy to unwind a strategy or relationship that wasn't well-suited to begin with.

What does vigilance look like?

Do not respond to product-only pitches. This is the sign of a salesperson, not an adviser.

If you meet with an adviser and their product idea is compelling, run it past trusted sources such as your accountant, lawyer and financial planner, if you have one.

Seek advice from independent sources not recommending proprietary solutions. These solutions may not be in your best interest and are rather a way for salespeople to maximize their income and the financial institution's profit margins.

Trust your gut. If it seems too good to be true, or just doesn't feel right, avoid it.

Process not product

Now, here is why I happen to enjoy working with physicians, lawyers, corporate executives and business owners.

They're busy. They're tired. They just want to spend more time with their family. They want to know that one day, all the hard work will pay off with some degree of financial security. Frankly, everyone wants these things.

It's important for you to know that the panacea is not a product. It is a process. A journey, not unlike the one that you take with your customers, patients, employees and corporate stakeholders.

The essence of the process looks like this:

Understand your uniqueness and history.

Flesh out how you define financial health/success.

Develop a well thought out, evidence-based plan to get you there.

Support and encourage you on your journey.

Repeat annually, more frequently as necessary, forever.

So really, for some of us in the industry, we're not that different from you. Apply the vigilance I recommend to finding these kindred spirits. You'll be wealthier as a result.

Replublished from The Medical Post - with permission

Rona Birenbaum is a certified financial planner and ounder of Caring for Clients. This information is of a general nature and should not be considered professional advice. Its accuracy or completeness is not guaranteed and Queensbury Strategies Inc.assumes no responsibility or liability.

My daughter was 11 at the time. She turns 18 next month and will be heading to university in the fall.

I’m feeling a bit nostalgic, a bit weepy (I may as well admit it) and in awe of the passage of time. So I’m bringing back the original post with an update on how things have evolved, and some ideas about what an allowance is and is not.

Should you give your child an allowance?

I was having coffee with a friend recently who has three beautiful daughters age 6 and under. She asked me when I began giving my soon-to-be 11 year old daughter Rachel an allowance.

Now, there are many philosophies on the subject, and sharing my own is not meant to be prescriptive. I do find, however, that people tend to be interested in my personal money decisions, given that I give so many people financial advice (yes, I practice what I preach!).

My daughter started getting a weekly allowance about 3 months ago. Here is how it happened:

I was preparing dinner after work and she was doing her homework at the kitchen table. Out of the blue she said, “Mom, when can I get an allowance?”

Me: “Why do you ask?”

Daughter: “Well, my friends get an allowance.” (bad answer)

Me: “What would you spend an allowance on?”

Daughter: “Hmmmm, well, birthday presents and Mother’s Day and Father’s Day presents. Stuff like that (good answer!). And I will do chores around the house.”

Me: Rachel, your responsibilities at home are yours whether or not you get an allowance. Everyone in the family pitches in, even though we don’t get paid for it. That will not change. Dad and I will discuss this and let you know.

We did discuss it, and neither of us have anything against giving Rachel an allowance. She has learned the value of money over the years and when she has received gifts in the form of cash, she hands over most of it for her savings account. So, having a little spending money for presents etc. will get her used to making buying decisions.

We surveyed a number of parents and found out that the going rate within her group of friends is $5. Wow, when I was a kid it was 50 cents! But back then, I could buy two chocolate bars for 50 cents.

So, how is it going? Pretty well I think! She has made a couple of purchases, but has also been saving. Just this weekend she mentioned that she is saving up for a laptop. Good thing they get less expensive every day!!!

2017 update

What did she first use her allowance for?

Yes, she did buy that laptop – second-hand and within her small budget. She was very pruod of her purchase and used it daily.

She did purchase small gifts for me, her dad and some of her friends to celebrate birthdays and seasonal holidays.

Then what?

Her allowance increased slightly over the years, then disappeared completely when she got her first summer job at age 16.

Savings from the summer job in hand, her required contribution to the “extras” increased:

She contributed 1/3 of the cost of her Apple IPhone.

She buys clothing items that are beyond the “necessary” (from her parents’ perspective).

She goes out with friends occasionally for Korean BBQ, Thai etc., and uses her own money.

How about her savings, and university costs?

I just handed over the birthday money she gave me to save for a number of years. She can handle it now.

She’s looking forward to the $2000 university scholarship offered to her (Calculus final grade permitting!).

And today?

She is heading into university with lots of savings in the bank, a sense of control over money and priorities, and a growing nest egg that will help her establish herself in her first apartment in second year university.

Yes, we could have paid for everything on top of providing an allowance but I don’t think that would have helped Rachel understand:

The value of a dollar

The benefit of delaying gratification

How money grows when invested

How money allows for independence and choice.

We did good. And so did Rachel.

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

Many of you will have read my March post, discussing the furor over TD bank employees being caught breaking the law. You may remember I was unsurprised. Bank employees being pressured to sell unnecessary products? That’s been a feature of the banking industry for as long as I’ve known it.

In a recent visit to LinkedIn, I ran into another example of this issue.

LinkedIn ­postings for financial planners – how much is about planning?

Whenever I visit LinkedIn, the platform tries to recruit me for positions they think suit my skills – typically, financial planner roles. The last time I went, I decided to actually look; I needed a break during a demanding day.

My eyes began to widen as I read. The financial planners the banks are looking for bear little relation to the candidates I’m looking for.

When I’m looking to add a new planner, I post on the Financial Planners Standards Council website; it’s where I found my last four. As I read the bank postings, I pulled out my posting, and started to check off the differences.

I began to see why most Financial Planner candidates tell me their job search is not going well. They are looking to help clients save appropriately and prepare for retirement, while the jobs postings with the Financial Planner title are actually aggressive sales roles.

A few examples – let’s start with job objectives and motivation

Following, a few excerpts from the Caring for Clients job posting on overall goals:

To support us in being … the leading fee-for-service financial planning firm in Toronto, responsible for delivering value-added planning services and ongoing support

Retaining clients so we are the last financial advisor clients will ever need

Delighting clients with every touch point.

Now, a couple of excerpts from the banks’ postings on objectives and motivation:

Your creativity, motivation, and hunger to drive new investment sales is what pushes you to provide world-class advice

The FP will identify opportunities to refer clients to bank partners, i.e. Retail and Wealth Management

Moving forward, let’s talk responsibilities

Here’s how the Caring for Clients job posting describes responsibilities of a planner:

Collect and analyze client financial and non-financial information

Prepare multiple planning scenarios using specialized software

Identify the actions need to achieve client goals and support and empower the client.

Sounds a lot like financial planning, right? But the banks have a different idea:

Focused on the mass affluent customer segment with responsibilities for retaining and increasing market share through acquisition of Money-in assets.

Develop external business referral sources through networking, marketing, and your centres of influence

Need to succeed qualities

Here’s the first line from each in the “need to succeed” category:

Us: Minimum 3 years experience in client-facing financial services role

Bank: Proven networking and client acquisition skills

And our conclusion is?

This isn’t solely about financial planning.

In Canada, we have a tendency to view banks and bank employees as courteous, impartial, and supportive. When we enter a branch to deal with minor or major financial matters, we typically accept their suggestions, sometimes without questioning. We notice they tend to leap when they see a chance to talk about investments, or if we have more than the usual amount in our chequing account, but we don’t pay much attention to it.

But! If this sounds like you, I recommend you be more wary. Each branch has metrics (aka sales objectives) assigned from head office; these are passed down to the individuals who work there – hence the furor at TD. Those courteous employees are trained and pressured to find opportunities to sell.

If you’re looking for a financial planner – an individual who reviews and analyzes all your financial data, then helps you set spending and saving goals, and offers support and counsel to help you meet those goals – your bank may not be the best place to start.

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

A “job for life” is a thing of the past. Most Canadians will receive a termination notice at least once in their career. Don’t leave getting the best possible treatment in your severance to chance. If you are hesitating getting legal advice before signing on the dotted line, consider the following:

1.The termination agreement is an offer, often up for negotiation. There very well be more money and protection available to you, but only if you ask. The request should come in the form of a legal letter from an experienced employment lawyer. The letter infers that you mean business and infers the potential cost of litigation which can motivate the employer to offer better terms.

2.The cost of legal advice is tax deductible. Legal fees paid to collect money owed to you for severance, pension benefits, or a retiring allowance are deductible on your tax return under “Other Deductions”. Keep in mind that your fees can’t be reimbursed by your employer and the amount collected must be considered income. For example, if your entire severance was transferred to an RRSP, the legal fees are not deductible that year. You can carry the deduction forward for 7 years though to deduct against other income. *

3.Ask for financial planning – A career interruption is the perfect time for a comprehensive financial plan. A planning engagement will help you manage through a period of unemployment and help you assess a range of employment options you may want to consider.

4.Insurance benefits are important – Ensure that your benefits extend along with your period of salary continuance. In most cases, group disability insurance benefits are difficult to negotiate inclusion. Transition disability insurance is designed to fill this specific gap and you can negotiate payment of the premium for such coverage into your termination agreement.

5.You will feel empowered – Job loss, even from a job you disliked, is emotionally draining. Taking control of the severance experience, is a confidence builder. Even if the ultimate terms remain unchanged because they were fair to begin with, you will have taken an important step in protecting your rights.

A termination notice can be upsetting, but if you empower yourself to be treated fairly, you will face the next phase of your career with greater confidence.

*Knowledge Bureau

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

The TD news doesn’t surprise me, and it shouldn’t surprise you either.

When CBC recently dropped the bombshell that employees were being pressured to sell unnecessary products to customers, all I could do is roll my eyes. It wasn’t news to me – that pressure has been a feature of the financial and banking industry for as long as I’ve been a part of it.

My journey in financial services

When I joined the financial services industry 25 years ago, I was full of energy and idealism. In my first five years, in the credit union environment, I soon discovered that I loved helping people with their finances.

But my entrepreneurial spirit urged me to spread my wings. When I heard that being an investment advisor provided the opportunity to be of service, plus tremendous potential if I was willing to put in the work, it seemed like the perfect combination. Continued learning, a greater challenge, and unlimited impact. Sign me up!

Next step? I applied to a bank-owned brokerage firm where my parents were clients.

I interviewed well. The firm was impressed with my professional accomplishments over the past five years, rising from teller to multi-branch manager at the tender age of 28. They liked the idea that I had a business degree in marketing. They asked me to do a raft of intelligence and psychographic tests, which I completed in record time.

Next, the second interview. Where I got the bad news. I would not be welcomed into their rookie investment advisor program.

The reason? The psychographic test suggested I was not “sales driven.”

I found another firm that hired me, but ultimately discovered that viewing potential clients as people to be sold to, rather than advised, was deeply embedded in the culture and structure of the industry. True, clients would be given advice. But in the end, earning a living required that I sell stuff. The stuff they wanted me to.

Going on my own

So, in 2000, I went independent. No more conflicts of interest, and sales targets. And I started a fee-only financial planning firm at a time when Canadians didn't understand the value of paying for independent, objective, holistic financial planning advice. Almost nobody was doing it. It was a time when friends and colleagues frequently asked me “Why should I pay for financial advice when I can get it for free from my current advisor or local bank branch?”

Fast forward 17 years. Canadians are much wiser. Independent fee-only Financial Planning is considered an invaluable process and a viable occupation. It's viable as a career now, because consumers are willing to pay for it.

And banks? They have to sell even harder than they did 25 years ago. Here are three reasons why:

Far more competition – from credit unions, independent wealth management firms, virtual banks, and financial technology platforms such as robo-advisors. Do a little googling of “blockchain” and you’ll quickly realize that the basic foundation of banking is being challenged.

“You never call, you never visit” – Sounds like a complaining family member, but in fact it’s the refrain of your bank manager. ATMs and online banking free consumers from the drudgery of visiting the branch. So there are fewer opportunities for bank staff to “offer” banking solutions to their customer base. It also makes it harder for them to build meaningful relationships with customers, so the pitch becomes more selling than problem-solving.

It’s generational – Historically Canadians maintained their relationship with their bank for a lifetime. It set the banks up to be the solid, profitable businesses that they are today. What got them here won’t get them there though. Today, Millennials, GenX and GenY and many Boomers put value ahead of loyalty when choosing financial products. It’s easier to make a change than ever before. That leads to a more aggressive bank sales culture, since everyone’s business is up for grabs.

Moral of the story

Canadians can be proud of their banks. The World Economic Forum has singled out Canadian banks as one of the soundest in the world for the past nine years in a row.[1]

But! Remember, when you talk to any bank employee, that banks are not impartial, and they do have an agenda. While it is easy to see a bank as a solid, safe, unbiased authority, the real story is more nuanced.

Keep that in mind, particularly when you are making a banking or investment decision!

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

Lucky Americans – they pay much lower investment advisory fees than we do in Canada.

Or so many people think … but is it true?

With the new CRM2 legislation showing investors how much you pay for advice, it’s considerably easier to do a cross-border comparison. Let’s start with the two components of the fees you pay. And a heads-up – read this part twice! Most people don’t understand the two-component aspect of how financial advice is priced; you’ll be well ahead if you do.

Two components to fees

1. If you are working with a financial advisor, there are two components to the fees you pay, product and advisor:

Product cost – the cost of the investments recommended by your advisor, e.g.

Fee insights from a U.S. benchmarking study: the results may surprise you

Since 2009 the median US advisory fee (not including product costs) on assets under management has hovered close to 1%. Fees drop to .70% at $5,000,000 and to .50% at $10,000,000 +.

But despite the fee pressure exerted by the robo-advisor trend, which took off in earnest in 2012, the 2014 edition of the FA Insight indicated that 70% of firms planned to keep their fees steady and 28% of firms planned to raise fees in the next two years. The data from 2016 confirmed the rise: 34% actually did raise fees.

So, do we pay more in Canada?

I believe that fees are somewhat higher here than in the US. This is based on both ongoing anecdotal evidence and data from the Globe and Mail Fee Tool (available to Globe Unlimited subscribers).

For example, I used the fee tool to find the average advisory fee being reported by Canadians with a portfolio between $500,000 and $1 million. 30% reported paying between 1.0 - 1.24% and 38% pay between 1.25% - 1.74%.

That is well above the 1% being charged in the US. Canadian investors are paying more relative to our US counterparts – it looks like the prevailing wisdom is correct!

The really big question – is it worth it?

It’s a matter of personal judgment as to whether you are receiving sufficient value for the fees you pay. However, at the very least, if you work with a financial advisor, you should know how their fees fit in the marketplace.

And even if the fees being charged by your advisor are competitive, you still need to evaluate whether you are getting value from the relationship.

The breadth and depth of service you receive depends on both the firm you deal with and the specific advisor. Some firm cultures encourage and reward holistic planning and advice; others pressure their advisors to focus on asset-gathering and reaching annual fee generation targets. What kind of firm do you think yours is?

Individual advisors differ as well. Some focus narrowly on investment management and advice. Others see their role more broadly, as financial planners, with a mandate that expands well beyond investment portfolio design and rebalancing.

In my mind? Premium pricing is appropriate only when you, the client, have access to advice that extends well beyond investment portfolio design.

The information contained herein was obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and Queensbury Strategies Inc. assumes no responsibility or liability.

My friend is dying, long before her time. I visited her at the hospital today and the subject of bucket lists came up. She asked me if I had one.

I don't.

For a moment I felt guilty about it. For heavens sake, a movie was made about them. Am I disrespecting the fleetness of my time on earth by not identifying "things I want to do before I die", and then ticking them off one at a time? Won't a page of ticked off boxes prevent regret when my time comes?

The answer, for me, is no. And that can be a relief for anyone who feels uncertain that they can, or will be able to, afford to do the things that comprise many a bucket list. I reflected momentarily on why I don't have one and came to the following conclusions.

I have something else. Goals. Big audacious goals. The goals are not things I want to do, or have. They are the impact I want to have while I'm here on earth.

I live in the moment. These days it's called "being present". Others refer to it as mindfulness. Turns out this comes naturally to me.

I practice gratitude. Though not in the way it's often encouraged these days by journaling, daily affirmations and the like. It's in my nature to be grateful for the small things (not having a plugged nose after a cold), and the big important stuff (like freedom).

The cool thing is that what brings me joy and makes me grateful don't cost anything in the conventional sense. So the bucket is full at the end of every day. I have all that I need, all the time. You might be thinking, "easy for her to say, my life is difficult, how can I be grateful and feel joy?". Well, I felt this way even when my husband was slowly and painfully leaving me, and this world, thanks to cancer. So, it's possible.

Now, this is a blog written by a financial planner. So what's the connect to money matters? You've probably guessed by now, but the bottom line is that money is a tool that is needed to navigate life and make stuff happen. But it's not the only thing. And much research has proven that after a certain (relatively modest) level of wealth or income, one's level of happiness plateaus. Over 11 million people have watched this TED Talk that highlights the research and important results.

So please, write that bucket list but it can't be the measure for the value of your life, your status, and most of all, your daily happiness. Because, after all, today is all we have, every day.

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

You've read the articles. Inability to save is like death by a thousand cuts. Cut out the small spends like expensive coffee is a step towards financial security.

Yes, I could have made a coffee and bagel for a fraction of what I paid Starbucks for it this morninig. But here's why it was worth far more than the $4 I spent.

It's about MOMENTUM.

I've discovered that getting motivated to do stuff that really matters on the weekend is hard for me. I wake up in the morning having a list of things I intend to do. But something happens. Cozy in my home, tired from a demanding week of work and family, I start to rationalize that I deserve to do nothing. The draw of curling up in a soft blanket on the couch reading escapist magazines or watching sports begins to win. I've earned the right, my mind keeps telling me. If you know me, you would agree and tell me that I do deserve it.

But here's the thing. At the end of the day of doing nothing, rather than feeling rewarded, I feel disappointed. Time wasted.

Maybe it's something about turning 50 next year, but I'm acutely aware of how fast time flies and how short my time on the planet is.

So I put on my runners and head out to Starbucks in the morning. It gets me moving. MOMENTUM. And once I'm moving, something magical happens. I want to do stuff. Stuff that makes life meaningful to me. That is often active, present, time with my daughter or parents. That is often working on business that ultimately is about making others' lives better.

So, when I go to bed tonight, I'll say to myself. That was the best $4 I spent today.

MOMENTUM. Keep moving.

June 2016

When Harry met Sally it seemed like their differences complemented one another. He loved it that she was responsible and “good with money.” Even though he made a decent salary, Harry seemed to live from paycheque-to-paycheque and never knew where his money went.

When Harry met Sally it seemed like their differences complemented one another.

He loved it that she was responsible and “good with money.” Even though he made a decent salary, Harry seemed to live from paycheque-to-paycheque and never knew where his money went. Sally helped him get things under control. And Sally appreciated Harry’s spontaneity and sense of fun. If she mentioned a play she wanted to see, he’d buy the best seats for the next available performance.

Now it is ten years later and they are parents of twins. Harry and Sally’s differences threaten to undermine their relationship. Each is frustrated by the other. Sally is anxious that Harry’s free-spending ways mean that they won’t have enough savings for retirement. And Harry feels judged whenever he buys something. Every time they try to talk about money it ends in accusations and bad feelings. And now the hostility is affecting other areas of their relationship.

Can a saver and a spender find happiness together? Yes – as long as they are honest about their differences, communicate openly, and share some core values.

Both Harry and Sally have legitimate points-of-view. Sally is correct that if the couple doesn’t put enough money aside, they won’t meet their goals of a comfortable retirement and helping the twins through university. And Harry also has a point when he says that their quality of life would be compromised if they focused too narrowly on these future goals. Yet if they have this conversation every time they need to make a financial discussion, frustration will set in.

Instead of frequent, frustrating conversations, Harry and Sally need a plan. If they can agree on some common financial goals and priorities, then their different attitudes to money shouldn’t undermine their relationship. They need to sit down, do the math and work out some numbers. They have to figure out how much they need to set aside for expenses and savings, and how much is left for “free” spending. After that, they can revisit the numbers on an annual basis, or whenever their financial situation changes.

If Harry and Sally have been arguing about money for the better part of ten years, this conversation might be very difficult. In order for them to reach a durable understanding, they might need help from a neutral third party. A good financial advisor should be able to help them arrive at appropriate numbers, and also help them explore their different attitudes to finances.

The practical issues – figuring out proper amounts for saving and spending – are actually the easy part. Harry and Sally also need to have a frank conversation about money and what it means to each of them. Sally needs to tell Harry that, when he makes an extravagant purchase, she worries about their future. And Harry should explain to Sally that he feels infantilized when she quizzes him on his spending habits. If each can understand the impact of their behaviour on the other, it will help both stick to the plan.

Guest post by: Jeanette Bicknell, PhD, CMed. She is a professional mediator who helps leaders manage conflict, and helps families communicate more effectively.

This information of a general nature and should not be considered specific advice, as each reader's personal financial situation is unique and fact specific. Please contact your financial advisor or Caring for Clients prior to implementing or acting upon any of the information contained herein.

Recently, the Globe and Mail created a tool for investors to compare if they are paying more or less for advice than other investors who complete the questionnaire do.

Fee transparency is important, and it got us thinking that how advisors spend those fees is also important and can provide clients with insights as to the business values of their advisor. So we analyzed our allocation of revenue and shared the results in our most recent client newsletter.

Perhaps the broader public is also interested, hence this blog post.

A recent analysis of our practice showed the following breakdown:

*information compiled internally

Compliance and Back Office 15% – This is the cost of all services provided by Queensbury Strategies, our investment dealer. We value Queensbury as a platform to provide conflict free advice and service without the pressure of sales quotas, within a collegial and supportive culture. When I worked at CIBC Wood Gundy, this percentage was over 50%. Keep in mind that the bank provided an employee, a workstation for me and my employee, and the brand value of Wood Gundy. In spite of this, for many reasons for the benefit of clients and my practice, I left the firm 15 years ago to become an independent advisor.

Salaries 40% – This includes staff salaries, health and dental benefits, CPP and other payroll related costs. As an independent, I’m on the hook for these expenses. However, rather than having only one dedicated support staff, I’ve chosen to have three. Two associate financial planners and one administrative assistant. The additional staff enable us to deliver a much more comprehensive and responsive service to clients. Furthermore, this strong base of expertise ensures seamless support to clients when I am on vacation or at home with the flu. These great young talents are also the future of the practice, and will hopefully be around long after I have retired.

Training and development 5% – This includes courses and exams related to continuing education and skills development for the entire team. Continuing education is a priority at Caring for Clients, and as you can see we invest a great deal more on training and development than we do on marketing. Our view is that if we strive for continued excellence, growth in clientele will naturally follow.

Marketing 1% - This includes all activities related to marketing and promotion. New clients come from three sources: existing client referrals, referrals from other professionals, and unsolicited inquiries through our website. We have invested a lot of time on delivering value to existing clients, building professional relationships beyond our clientele, and in building a reputation as an industry leader which shows up in our media mentions and growing web presence. Our efforts in this regard are resulting in business growth that is not reliant on advertising and traditional sales and marketing.

Technology and Client Service 10% - We are constantly investing in our planning technology, and are currently investing in the development of a new client portal that will make the client onboarding experience an even more pleasant one. The online portal will be expanded over time as we identify opportunities to use technology to enhance the client experience. In addition, we look for ways to express how much we value our clients and these expenses fall into this category too.

Office Rent 4% - The cost of one office and two workstations in downtown Toronto. So far, my team member, Alexandra doesn’t mind sharing an office with me. I try to be on my best behavior! J We are in a great building in a convenient location that our clients seem to really like.

Retained Earnings 25% - Otherwise known as profit. This is the part that is available for annual bonuses for staff, and for investing in the future of the business such as hiring additional staff when needed. It is also important to run a profitable business to ensure sustainability during cyclical downturns when revenue falls. Ours is a cyclical business, and operating conservatively from a financial standpoint means that we can stay focused on client service even when revenues decline, which happens during a bear market. A secure business is one that will be around over the long term. Given the fact that our clients will need us over the long term, we view this as an important strength.

By the way, I used the Globe and Mail fee comparison tool to see where our fees stand in the marketplace. I was pleased to see that as full-service planners and wealth managers, in all categories, our clients pay less than average, while (in our view) getting more advice and service than average.

This information is general in nature and is not intended to constitute specific financial advice for any individual. Please speak with us directly for advice customized for your needs.